Instituto de Estudios Políticos y Derecho Público "Dr. Humberto J. La Roche"
de la Facultad de Ciencias Jurídicas y Políticas de la Universidad del Zulia
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Vol.41 N° 77
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Cues tio nes Po lí ti cas
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Vol. 41, Nº 77 (2023), 703-713
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Recibido el 07/12/22 Aceptado el 10/02/23
Analysis and priorities
of state regulation of the labor
market in crisis conditions
DOI: https://doi.org/10.46398/cuestpol.4177.46
Yurii Shpak *
Vitaliy Davydenko **
Vаsyl Pasichnyk ***
Valentyna Zhukovska ****
Viktoriya Ivanyuta *****
Abstract
The main objective of the study was to analyze the
characteristics of state regulation of the labor market in a
crisis. Structural changes in the labor market are due, among
other reasons, to the transformation of public and economic
relations in today’s globalized world. Increased competition, the
development of the knowledge economy, information technology, changes
in the content and forms of work require updating the system of labor
market regulation. The research methodology of the study involved the
use of cognition methods such as: induction and deduction, comparison
and systematization to characterize the understanding of the essence of
the addressed problem. In addition, the structure developed included a
basic documentary study, together with IDEF modeling. It was concluded
that the labor market is subject to market, corporate, state and interstate
regulation, the combination of which depends on a number of dialectical
factors that are formed as a function of time and space. On the other hand,
market regulation is spontaneous, and corporate, state and interstate
regulation, unlike market regulation, is rather biased and strictly regulated
by specic policies.
Keywords: state regulation; labor market; market crisis; crisis
conditions; public policy.
* Zhytomyr Polytechnic State University, 10001, Zhytomyr, Ukraine. ORCID ID: http://orcid.org/0000-
0003-0922-2550
** Vinnytsia Institute of Economics and Social sciences of University "Ukraine", 21012, Vinnytsia,
Ukraine. ORCID ID: https://orcid.org/0000-0002-3921-5098
*** Lviv Polytechnic National University, 79059, Lviv, Ukraine. ORCID ID: https://orcid.org/0000-0002-
2447-2374
**** State University of Trade and Economics, 59000, Kyiv, Ukraine. ORCID ID: https://orcid.org/0000-
0001-5033-711X
***** Zhytomyr Polytechnic State University, 10001, Zhytomyr, Ukraine. ORCID ID: https://orcid.
org/0000-0002-4037-5590
704 Yurii Shpak, Vitaliy Davydenko, Vаsyl Pasichnyk, Valentyna Zhukovska y Viktoriya Ivanyuta
Analysis and priorities of state regulation of the labor market in crisis conditions
Análisis y prioridades de la regulación estatal del
mercado laboral en condiciones de crisis
Resumen
El objetivo principal del estudio fue analizar las características de
la regulación estatal del mercado laboral en una crisis. Los cambios
estructurales en el mercado laboral se deben, entre otras razones, a la
transformación de las relaciones públicas y económicas en el mundo
globalizado de hoy. El aumento de la competencia, el desarrollo de la
economía del conocimiento, la tecnología de la información, los cambios
en el contenido y las formas de trabajo requieren actualizar el sistema de
regulación del mercado laboral. La metodología de investigación del estudio
implico el uso de métodos de cognición como: inducción y deducción,
comparación y sistematización para caracterizar la comprensión de la
esencia del problema abordado. Además, la estructura desarrollada incluye
un estudio documental básico, junto al modelado IDEF. Se concluyo que
el mercado laboral está sujeto a una regulación de mercado, corporativa,
estatal e interestatal, cuya combinación depende de una serie de factores
dialecticos que se forman en función del tiempo y el espacio. Por su parte,
la regulación del mercado es espontánea y, la regulación corporativa,
estatal e interestatal, a diferencia de la del mercado, está bastante sesgada
y estrictamente regulada por políticas especícas.
Palabras clave: regulación estatal; mercado laboral; crisis de los
mercados; condiciones de crisis; política públicas.
Introduction
The labor market and employment of the population occupy a special
place in the system of market relations. Most of the economic, social,
demographic phenomena taking place in a market economy, directly or
indirectly, fully or partially reect the processes taking place in the labor
market. Being an integral part of the modern economy, the labor market
plays an important role in the reproduction system. It is in the labor market
that the labor force is bought and sold, its usefulness and social signicance
are evaluated.
In this regard, the scientic search for ways to solve problems related to
the creation of favorable conditions for increasing the human potential is
relevant and of great theoretical importance. Particular attention should be
paid primarily to the regulation of employment and the labor market as a
whole. Deep knowledge of the fundamentals of labor economics plays a key
role in understanding many social problems and phenomena.
705
CUESTIONES POLÍTICAS
Vol. 41 Nº 77 (2023): 703-713
Reforming the processes of labor market regulation should be aimed at
overcoming the negative impact of the socio-economic crisis, taking into
account the peculiarities of modern forms of involving labor in the social
reproduction process, ensuring the optimal ratio of state and market levers
of inuence in order to strengthen the vector of European integration,
implement the postulates of the strategy for sustainable development of the
domestic economy, the exit of the national economy to a new level of socio-
economic development and technological structure.
A systemic crisis is a kind of crisis that is generated by the system itself
and which cannot be overcome on the basis of the totality of the system’s
own resources. A systemic crisis is expressed in the fact that the principles
on which it is based, through a chain of cause-and-eect relationships, give
rise to phenomena in the system itself and (or) in the environment, which
contribute to the unsuitability of the system or can completely destroy it.
The labor market regulation mechanism is a set of normative, legislative
or collective agreements that guide partners in the implementation of
employment policy. The labor market regulation mechanism covers a list
of economic, social, psychological factors that determine the functioning
of the labor market. In the domestic scientic literature devoted to the
problems of labor market regulation, there is no single approach to this
direction.
The main purpose of the study is to analyze the features of state
regulation of the labor market in a crisis.
1. Materials and methods
To characterize the features of state regulation of the labor market
in crisis conditions, the following methods were used: induction and
deduction, comparison and systematization to characterize the modern
understanding of the essence of the features of state regulation of the labor
market in crisis conditions, synthesis and analysis of the development trend
of the features of state regulation of the labor market in crisis conditions;
morphological analysis - to clarify the signicance of the features of state
regulation of the labor market in crisis conditions; abstract-logical - for
theoretical generalizations and conclusions of the study of state regulation
of the labor market in a crisis.
To more accurately reect the main features of state regulation of the
labor market in a crisis. Structural shifts in the labor market are due to
the transformation of public and economic relations in today’s globalized
world, we used the IDEF0 functional modeling method.
706 Yurii Shpak, Vitaliy Davydenko, Vаsyl Pasichnyk, Valentyna Zhukovska y Viktoriya Ivanyuta
Analysis and priorities of state regulation of the labor market in crisis conditions
2. Literature review
Among scientists there is no unanimity of opinion regarding the
denition of the essence of labor market regulation. It is generally
recognized that it should be aimed at stimulating the growth of the quality
of the labor force and providing it with jobs (Holubnycha et al., 2019). The
main discrepancies relate to the denition of its scope and leverage.
He believes that the state mechanism for regulating the employment
of the population in the conditions of the formation of a socially oriented
economy is a system of measures (social, economic, nancial, legal,
organizational, psychological) of the state to ensure eective employment,
normal working conditions and rational use of labor force (Bentolila et al.,
2019).
According to modern scientic research (Anelli and Peri, 2017;
Kryshtanovych et al., 2022.), the mechanism for regulating the labor
market in a systemic crisis should include a goal, functional support for the
implementation of the goal, subjects, objects, principles, methods (means),
tools of inuence. Given the theoretical achievements in setting the goal
of labor market regulation in a systemic crisis, it is necessary to structure
a combination of regulatory mechanisms, self-regulation and contractual
regulation of the labor market.
Then the goal of labor market regulation in the conditions of a systemic
crisis can be formulated as a clear denition of the proportions of state
regulation, self-regulation and contractual regulation of the labor market,
justication of the maximum level of state intervention in the processes
of regulating the solution of multifaceted issues of employment and social
protection of the unemployed (Grenčiková et al., 2018).
The objects of labor market regulation are social and labor relations
between an employee and an employer on the basis of current legislation
and contractual regulation of these relations. The principles of the
state regulatory policy in the labor market, methods and tools for their
implementation are carefully considered by domestic scientists in numerous
works devoted to this problem.
Functional support for the implementation of the goals of labor market
regulation is not considered in the scientic literature as an integral system.
Only the functional subsystems of labor market regulation are studied,
namely: the formation of the labor market, the management of production,
distribution and use of labor (Drebot et al., 2019).
707
CUESTIONES POLÍTICAS
Vol. 41 Nº 77 (2023): 703-713
3. Research Results and Discussions
In a systemic crisis, it is necessary to correctly nd the functions of
regulating the labor market. The most correct approach is to consider the
regulation of the labor market as a set of management functions carried
out by state bodies and entrepreneurs in order to balance the demand and
supply of labor. Since the goal of labor market regulation is to achieve full,
productive and freely chosen employment, in the process of regulation
within the framework of the socio-economic crisis, it is necessary to solve
the following planned tasks (Sylkin et al., 2021).
The infrastructure of the labor market as a set of its constituent elements
and links between them functions in a certain political and socio-economic
space, is inuenced by factors of the external and internal environment.
The external environment is determined by macroeconomic factors (the
state of the country’s budget, the investment activity of economic entities
and their nancial condition, the behavior of sellers and buyers of labor,
etc.) (Hennadii et al., 2022).
The main threats that negatively aect the system of state regulation of
the labor market are shown in Figure No. 01.
Own elaboration. Fig.1. The main threats that negatively aect the system of
state regulation of the labor market.
708 Yurii Shpak, Vitaliy Davydenko, Vаsyl Pasichnyk, Valentyna Zhukovska y Viktoriya Ivanyuta
Analysis and priorities of state regulation of the labor market in crisis conditions
In contrast to the approach to market infrastructure that is common
in theory and practice as a set of elements that ensure the conditions for
the functioning of the market, it is a set of relations that develop between
subjects regarding the organization of the exchange of labor services on
an equivalent basis. The aggregates of organizational and legal forms and
institutions that ensure the interaction of hired workers and employers in the
process of employment and employment policy are only forms of organizing
relations in the labor market. The emphasis on economic relations, and not
on organizations and, moreover, not on objects, as is common in economic
literature, corresponds to the disclosure of the content of such a complex
phenomenon as market infrastructure.
In addition, with this approach, infrastructural relations in the labor
market are mediated and produce substantive relations. Finally, attention
is drawn to the most important distinctive feature of the infrastructural
process, its products - the exchange of labor services and employment.
Moreover, along with the commodity nature of labor services, which
manifests itself in equivalent exchange, and determines the market elements
of infrastructure, the latter also has non-market components (Chlivickas et
al., 2010).
The mechanism for regulating the safe development of the labor market
involves the observance of a number of principles: consistency, complexity,
fairness, reliability, optimality, functionality, eciency, stability, well-
known (Maidyrova and Mamedova, 2013).
Thus, the infrastructural arrangement of the labor market plays an
important role in the formation of a mechanism for its regulation. It is
a factor in the development of the labor market and an indicator of the
transition to the market in the eld of labor relations.
The infrastructure of the labor market is designed to coordinate the
interests of its participants and absorb the emerging disproportions
between supply and demand in its local areas, and therefore transform
tense social well-being into prosperous, and prosperous - into comfortable.
The nal result of the employment policy, which is an integral part of the
general socio-economic policy pursued by the state, will largely depend
on the eectiveness of the functioning of the labor market infrastructure
(Kryshtanovych et al., 2021).
The model of state regulation of the market in a crisis is shown in Figure
No. 02.
709
CUESTIONES POLÍTICAS
Vol. 41 Nº 77 (2023): 703-713
Fig.2. The model of improving of state regulation of the market in a crisis.
State regulation of the labor market
Labor Code International law
Technical support
Resource support
Motivation system
Increasing employment
Improvement of working conditions
Own elaboration.
In the context of the globalization of the world economic space, aspects
of the formation of the domestic labor market are becoming important. By
delimiting the work of people in accordance with the needs of society, this
market covers all sectors of the economy, activities, forms of ownership, and
the ratio between supply and demand determines the stability of the state
economic development. Therefore, in modern economic conditions, the
issues of comprehensive research and monitoring of the processes taking
place in the labor market are extremely relevant (Rembeza and Radlińska,
2021).
The structural elements of the labor market are the demand for labor,
supply, price and cost of labor. Demand is created by employers who hire
labor; it reects the general structure of the country’s needs on the part
of companies, institutions, organizations. The oer on the labor market
depends on the social and demographic situation in the country, age,
gender, education, qualications of the worker.
Like any product, labor power has its price and price. The wages of the
wage worker is the price at which he sells his labor power. The worker denes
wages as labor income necessary to create conditions for the reproduction
of labor power; the enterprise considers wages as a structural element of
production costs and a determining factor of material interest in obtaining
the eect from activities (Acemoglu and Autor, 2011).
The subjects of state regulation are individuals and legal ocials,
collective legislative and administrative bodies, state authorities at all
levels, local governments, associations that form state policy; contractual
regulation - the parties of social dialogue; self-regulation - state and
710 Yurii Shpak, Vitaliy Davydenko, Vаsyl Pasichnyk, Valentyna Zhukovska y Viktoriya Ivanyuta
Analysis and priorities of state regulation of the labor market in crisis conditions
territorial authorities, trade unions, associations of entrepreneurs
(Radlińska et al., 2020).
The nal step of our functional modeling model IDEF0 will be the
formation of Decomposition of achieving the nal goal A0 – Improving of
state regulation of the market in a crisis (Fig.3).
Information about
the progress of the
stage A2
Information about the
progress of the stage
A3
Analysis and forecast of supply and
demand for labor (information on the
state of the labor market)
Assistance in finding a job
Organization of vocational
training, retraining and
financial assistance
A1
A2
A3
M2M1
Control over the progress of the
stage
A2
Control over the progress of
the stage
A3
Control over the
progress of the
stage
A1
C1 C2
Information about the
progress of the stage A1
O2
O1
І1
Own elaboration. Fig.3. Decomposition of achieving the nal goal A0 -
Improving of state regulation of the market in a crisis.
Functional support for the implementation of the goal of labor market
regulation is not considered in the scientic literature as an integral system,
only its functional subsystems are studied. The most adequate approach
is to consider the regulation of the labor market as a set of management
functions carried out by state bodies and entrepreneurs to balance the
demand and supply of labor (Sylkin et al., 2021).
This suggests that: planning should include the reorganization of the
labor market planning system in accordance with the challenges of society,
competitive subsidies for employers to create new jobs and maintain existing
ones; organization - restructuring the work of employment centers at all
levels into national employment agencies, restructuring social institutions
in accordance with the challenges of society, developing progressive social
guarantees and standards, using modern HR technologies.
711
CUESTIONES POLÍTICAS
Vol. 41 Nº 77 (2023): 703-713
Conclusions
Summing up, it should be noted that the problem of regulating the
national economy and strengthening the national security of the state
also involves the regulation of the safe development of the labor market.
Ensuring a balance between the supply and demand of the labor force of the
country’s citizens with decent paid work can ensure: the growth of personal
security, both economic and social; overcoming poverty and stratication
of society; prosperity growth; decrease in unemployment; reducing social
tension in society and avoiding political conicts based on dissatisfaction
with the standard of living, etc. Since market mechanisms are not always
able to solve urgent problems of the labor market, corporate, state or
interstate mechanisms should come to its aid.
The labor market is subject to market, corporate, state and interstate
regulation, the combination of which depends on a number of factors that
are formed depending on time and space. Market regulation is spontaneous,
and corporate, state and interstate regulation, in contrast to market
regulation, is quite biased and strictly regulated.
Modern trends in world development shift the problem of ensuring
the eciency of the labor market to the priority tasks of economic science,
raising it to the level of a nationwide, strategically important problem, the
solution of which has allowed many countries to claim a worthy place in
the world community as a competitive partner. This formulation of the
question indicates the relevance of this study and its practical signicance.
The analysis of the features of state regulation of the labor market in crisis
conditions is carried out. A decomposition model for improving the system
of state regulation of the labor market in a crisis was formed.
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en abril de 2023, por el Fondo Editorial Serbiluz,
Universidad del Zulia. Maracaibo-Venezuela
Vol.41 Nº 77